Episode 102: Before the IRS Comes For You
On this episode of The Corelink Solution, we’re diving deep into the world of proactive money protection and achieving career goals. With tax season quickly approaching, it’s time to start preparing. My special guest is former IRS Agent, Tax Professional Xavier McNeil and he’s sharing what you need to do to protect your money!
Meet Xavier McNeil
I’m thrilled to introduce Xavier McNeil, a Drake University graduate with a degree in accounting. Xavier has a wealth of experience working in tax resolution firms and at the Internal Revenue Service, providing him with valuable insights into tax issues. I’ve always admired his work at Tax Biz USA, a company founded by his wife Mrs. Beth McNeil.
Something you may not know about Xavier is his passion for music production and his previous venture into podcasting. He loved discovering underground artists and promoting their work.
Xavier’s journey into accounting wasn’t accidental. He had always been interested in accounting and pursued it as a major in college. He interned at various accounting firms, including Tax Biz USA, and later worked at the Internal Revenue Service. However, during the pandemic, he realized that he wanted to use his skills to help people rather than simply collect taxes.
Insights from the IRS
Working at the Internal Revenue Service gave Xavier a unique perspective on taxpayers’ rights and privileges. He shared that taxpayers are responsible for paying self-employment taxes, especially those in the digital marketplace receiving brand endorsements, gifts, and payments as 1099 contractors. This can be a new experience for them, as they are used to being W-2 employees and having taxes automatically deducted from their paychecks.
The Importance of Reporting All Income
Xavier emphasized the importance of reporting all income, no matter how small, to avoid penalties and interest. He advised being proactive by staying organized, keeping track of expenses, and doing basic bookkeeping.
Dealing with the IRS
One of the key points we discussed was the importance of opening letters from the IRS and not ignoring them. Sometimes the letters may contain good news, such as a tax refund. However, if ignored, the situation can escalate and lead to levies and further troubles. I compared the IRS agent to both the judge and the jury in a court case, stressing the importance of having representation when dealing with the Internal Revenue Service and not going in alone.
Managing Time Effectively
We also touched on the importance of fighting off distractions and managing our time effectively. I compared this to a pizza with a limited number of slices, urging us to be conscious of how many slices we add. I introduced the concept of studying ourselves and suggested creating a grid to plan how we use our time.
In conclusion, I encourage you all to be leaders and take control of your time and priorities to achieve your goals. I also want to thank Xavier for his insights and promote his business, Taxpayers USA, as a black-owned and family-operated company.
Engage with Us
I invite you all to share your takeaways from this episode. I emphasize the importance of being informed, empowered, and accountable. Feel free to ask questions or seek clarity on any new information or concepts discussed in the episode. You can reach out through our website or social media channels such as Facebook, Instagram, or Twitter. I appreciate your engagement and look forward to hearing from you.
The importance of proactive money protection [00:00:00] Discussion on the significance of protecting and keeping more of your hard-earned money, drawing parallels to car maintenance.
Getting ahead of potential tax issues [00:01:01] Conversation with Xavier McNeil about the proactive approach to avoiding tax problems and the cost difference between repairs and maintenance.
Xavier McNeil’s journey and passion for music [00:01:52] Xavier McNeil shares his background, including his college podcast about underground music and his interest in music production.
Self-employment taxes and influencers [00:07:35] Discussion on the challenges faced by influencers and entertainers in paying self-employment taxes for the first time.
Tax liability for receiving payments [00:08:35] Exploration of the tax liability for individuals who receive payments as influencers or content creators, even if they don’t receive a 1099 form.
Impact of tax issues on businesses [00:12:22] Insight into the significant number of businesses that fail due to tax issues, including money mismanagement and owing the IRS payments.
The IRS ramping up agents [00:16:09] Discussion on why the Internal Revenue Service is hiring more agents, including retirement of older agents and the need for new agents to regulate emerging markets.
New technologies and income reporting [00:16:57] Exploration of new technologies like Venmo and Cash App and how they impact income reporting and taxation.
Being proactive and organized as a small business owner [00:21:37] Advice on being proactive by staying organized, keeping track of expenses, and doing bookkeeping to mitigate tax responsibilities and take advantage of benefits.
Opening the letter can save you trouble [00:22:27] Importance of opening letters from the IRS to avoid escalating issues and potential levies.
Representation is crucial when dealing with the IRS [00:23:17] Comparing the IRS audit process to a court trial and emphasizing the need for professional representation.
Keys to getting things done [00:26:35] Tips for prioritization, avoiding multitasking, and fighting off distractions to increase productivity in your career.
Distractions and Time Management [00:29:45] Discussion on the importance of recognizing and fighting off distractions, managing time effectively, and reducing the number of tasks to focus on the important ones.
Regrets and Grudges [00:30:35] The need to let go of regrets and grudges, as they can become distractions and drain mental energy.
Setting Boundaries [00:31:32] Discussion on the importance of setting boundaries in relationships and time management to avoid distractions and stay focused on goals.